|News||After crude opened on a bullish gap, it continued in its upside journey|
|Analysis||Crude oil rose since the opening of today’s session supported by optimism that spread cross financial markets as Greek politicians agreed on austerity plan that would secure a 130 billion Euros for the country in the second bailout, where the commodity is struggling around the physiological level at $100.|
Crude oil opened today’s session at $ 99.44 with a bullish gap after it closed last week’s session at $98.85, where it reached so far a high of $100.00 and a low of $99.07 a barrel.
We can see how crude has recovered from last Friday’s loss which took the commodity down to near $98.5 levels, but it retraced today and is currently struggling around the strong momentum levels $100, and if it breaches this level, it will be a very positive sign.
After last week downside wave which dominated the commodity when Greece’s policy makers couldn’t reach an agreement on this plan, as they finally agreed on it on Sunday despite the refusal from Greece’s streets, as the plan would cut jobs, pension pays and increase taxes.
However, this plan was necessary for the country and for the troika to approve the second bailout for the country by 130 billion Euros, which will prevent the country from falling into a default in the near term, and the parliament’s approval on it have pushed the sentiment in the region and indicated a brighter future for the debt-laden nation.
Despite this optimism wave across financial markets, we can see high uncertainty in it mixed with optimism, as Greeks are not okay with these measures and they rejecting it strongly which will cut their incomes badly, and investors are worried about this matter and hoping to see positive developments nothing else.
Amid this empty financial calendar from major economies and uncertainty mixed with optimism in Europe, volatility will appear frequently and we will see choppy trading indeed, but the commodity will keep its upside bias after Greece deal waiting for further developments in the continent.
Along with this positive factor that affects crude oil positively, we can take a look on global oil supplies which continued to support the commodity for a long period and still do, as tensions between the west and Iran is increasing as Iran's parliamentary speaker warned that Iran will not forgive Gulf nations if they continue backing US plots against Tehran.
In general, crude oil has gained well at the beginning of the week, and as we said it may continue in this upside bias, but the bullish momentum might ease if uncertainty rises, which will open the door for volatility to dominate the commodity prices.